Kefi Gold & Copper PLC on Tuesday said it is advancing early works at the Tulu Kapi mine and finalising financial arrangements ahead of full project launch.
The Nicosia, Cyprus-based exploration & development company is focused on deposits in the Arabian-Nubian Shield.
Kefi said early works at its 95% owned Tulu Kapi gold project in western Ethiopia are ramping up with physical activities including the commencement of the building of construction camps, drilling of water wells, and upgrading a nearby company airstrip.
Principal contractors are also updating the final infrastructure budget with international plant fabricators, to facilitate the execution of a fixed price construction agreement next month.
‘Studies [are] being undertaken to increase processing capacity by a minimum of 20% as we now look to incorporate the addition of underground mine development, having already set the open pit mining rate at above the nameplate capacity of the process plant. Studies suggest this increased capacity can be achieved within existing capex and opex forecasts,’ Kefi said.
Furthermore, a second site visit by secured lenders has been prepared so that a second co-lender may proceed with its final credit approval in September to follow the first already received.
Executive Chair Harry Anagnostaras-Adams said: ‘KEFI is pressing ahead on the ground in Ethiopia as fast as permitted by land access. The situation has turned decidedly pro-mining with site activities made possible over the past two months with the deployment of large safety-protection forces [provided by the government and private security contractors].
‘We are fortunate to have very supportive government partners, financiers and contractors, and it is fortuitous that major economic reforms are being unveiled in Ethiopia as we launch our works.’
With current gold prices reaching an all-time high of $2,500 per ounce, the first full year net cash flow from Tulu Kapi is estimated at $196 million which Kefi said is more than enough to repay the project’s debt.
Kefi shares were up 2.8% to 0.59 pence each in London on Tuesday afternoon.
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